One of the best definitions of Economics is ‘the study of the allocation of scarce resources’. International trade is very much about the allocation of scarce resources. When resources (Land, Labor, Capital, and Entrepreneurial Ability) are allocated to their most efficient use, society is better off. Society is able to enjoy greater amount and types of goods at lower costs. The WTO’s purpose is to negotiate lower trade barriers (tariffs and quotas) so that nations can trade more freely. However, some people feel that free trade is not in their best interests.Do you think the United States should attempt to enforce labor standards and environmental standards on its international trading partners? Why or why not?
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